Ecommerce KPI

Repeat Purchase Rate Formula

Learn what Repeat Purchase Rate means, how to calculate it in Excel, and how to recreate the same KPI as a Power BI DAX measure.

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Quick answer

Repeat Purchase Rate is calculated as:

Repeat Customers / Total Customers

Use this Excel version when your inputs are on row 2:

=IFERROR(B2 / C2,0)
Example result36.0%
FormatPercentage
Typical chartLine chart for trends; bar chart for comparing teams, channels, products, or locations.

What is Repeat Purchase Rate?

Repeat Purchase Rate measures one outcome compared with a base number. It is useful because it turns raw counts into a comparable percentage or ratio, so teams can compare periods, channels, products, or locations fairly.

Ecommerce KPIs connect website behavior, checkout performance, repeat purchases, returns, and revenue.

Beginner tip: A KPI is not just a formula. It is a number used to make a decision. Before adding it to a dashboard, write down the definition, time period, owner, target, and data source.

Real-life example

Imagine an ecommerce manager reviewing store performance. The team adds the inputs for Repeat Purchase Rate to an online store dashboard, calculates the KPI for the current month, and compares it with the previous month and target. In the sample below, the result is 36.0%. That number becomes useful when everyone uses the same formula each month.

Excel cellInputWhat it meansSample value
B2Repeat Customersthe count of customers or users that match the KPI definition1,800
C2Total Customersthe count of customers or users that match the KPI definition5,000
ResultRepeat Purchase RateOutput of the KPI formula36.0%

How to calculate Repeat Purchase Rate in Excel

  1. Create one row per reporting period, team, product, campaign, location, or customer segment.
  2. Add one input per column. Do not combine inputs in the same cell.
  3. Paste the Excel formula in the KPI result column.
  4. Format the result as Percentage.
  5. Copy the formula down the table and compare the result against target, previous period, and trend.
Quality check before publishing:
  • Use the same date range for every input.
  • Confirm that the denominator is not blank or zero.
  • Document whether the KPI is calculated before or after discounts, refunds, taxes, returns, or cancellations.
  • Keep the definition stable so reports remain comparable over time.

Power BI DAX measure

If you also report this KPI in Power BI, create a measure instead of hard-coding the calculation in a visual. Replace the measure names below with the names used in your model.

Repeat Purchase Rate = DIVIDE([Repeat Customers], [Total Customers], 0)

For best results, build base measures first, such as revenue, cost, customers, orders, or tickets, and then build the KPI measure from those base measures.

How to read the result

Higher is usually better, because this KPI normally represents revenue, efficiency, quality, retention, productivity, or successful outcomes.

Do not read the KPI alone. A single value can be misleading without a target, trend, segment, and business context. For example, the same result may be good for one product line but poor for another.

Useful comparisons

  • Current month versus previous month.
  • Actual result versus target or budget.
  • By channel, product, customer segment, team, or location.
  • Rolling average over several periods to smooth one-off spikes.

Common mistakes

  • Mixing time periods, such as monthly cost with quarterly revenue.
  • Using a total when the KPI should be segmented.
  • Changing the formula definition after the dashboard is already in use.
  • Comparing two teams that collect the inputs differently.
  • Ignoring blanks, zeros, refunds, cancellations, or duplicate records.